Nifty 50: One sector contributed half of index firms’ EBITDA in Q4 FY24

Nifty 50 – The index consists of 50 companies representing 10 diverse sectors. This sector contributed to the cumulative EBIDTA of all companies in the last quarter of FY24.

The total EBIDTA pool of Nifty 50 companies grew by 25% in Q4 FY24. (Image source: Freepik)

If you are interested in investing in stocks or mutual funds, this is the market news you can never lose sight of. Only one sector contributed to the EBITDA of all the 10 sectors that make up the popular index of the Indian stock markets.

Why is EBIDTA important?

EBITDA is a key metric that investors and analysts track. It is a measure of any company’s earnings from its operations before taxes, depreciation, and amortization.

This parameter indicates the value of the company’s cash flows generated by its operating activities, as it is calculated by taking into account the expenses necessary to maintain operating activities.

Financial services

During the January-March quarter of 2024, the cumulative EBIDTA of all 50 companies in the Nifty 50 stood at Rs 5,98,374 crore (Rs 5.98 lakh crore). The financial services sector accounted for Rs 2,92,099 crore or 48.81 per cent, the latest data disclosed by the NSE showed.

Energy

No other sector, except energy, came close to the Rs 1 lakh crore mark. Energy companies collectively contributed Rs 97,775 crore of EBIDTA, which was 16% of the total EBIDTA.

Information technology

Even though IT companies have been going through a tough period for some time now, due to the economic slowdown in major developed markets, their share in EBITDA stood at 7.5% and enterprise value stood at Rs 44,932 crore.

Consumer Discretionary Goods

The consumer discretionary goods sector accounted for 6.65% and ranked fourth in the ranking.

Materials

The materials sector’s EBITDA stood at Rs 36,888 crore, accounting for 6.16%.

Tools

Utilities collected Rs 25,702 crore, which was 4.29% of the total collection.

Communication services

The communication services sector posted an EBITDA profit of Rs 20,512 crore, which was 3.42 per cent of total profit.

Industrial

Industrial goods accounted for 3 per cent, while consumer staples accounted for Rs 13,915 crore or 2.32 per cent.

Healthcare

The lowest contribution to the EBITDA pool came from healthcare companies, which accounted for Rs 13,915 crore or 1.46%.

EBIDTA Growth Story

The financial services sector also outperformed all others in terms of EBITDA growth. In the fourth quarter of the last fiscal year, it grew by 44.6%.

The slowest growth rate was recorded by the materials sector – 0.3%.

In the remaining sectors, growth rates were as follows: consumer discretionary 28.3%, healthcare 20.4%, energy 14.6%, IT 6.8%, utilities 6.4%, industry 6.3%, communication services 4.7% and consumer staples 3.1%.

As per the latest NSE release, the Nifty 50 company’s cumulative EBITDA rose by 25%.